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Navigating Retirement as a Widower

April 29,
2016
| Chrystle Fiedler; excerpted from Thrivent magazine

Reorganizing finances saved widower against huge tax implications

Thrivent members Lee Holden and his wife, Nancy, had their golden years all
mapped out. "We were always saving for retirement," says Lee, 62, a substation superintendent
at an electric co-op. Between a 401(k) and his pension, the couple had created a healthy
nest
egg.

But when Nancy died unexpectedly in May 2010, everything changed.

Reassessing the retirement strategy

Lee realized that the plans they had for retirement – travel, vacations,
time with family – could still happen, but for one person, not two. He knew
he needed to take a look at his financial strategy.

For years, Lee and his wife had worked with Thrivent Financial representatives
Debra Jans and Dennis Vernon. Lee turned to them again. And since Thrivent Financial
representatives can't provide accounting or tax advice and services, they included
Lee's accountant and attorney.

The Thrivent team asked Lee when he expected to retire, what he was planning to
do during his retirement years and how much money he thought he'd need for day-to-day
living.

"The first thing we noticed was that the amount he needed to live on was far less
than what his required
minimum distribution would be. That was a huge red flag," says Vernon. "If we
didn't make some changes, once he reached age 70½, he'd still have to take
out the full amount required by law – even if he didn't need the money. We also
learned his pension plan required withdrawal decisions be made at age 62, even if
he was still working."

The bottom line? Lee would have huge tax issues unless he reorganized his finances.

Easing the burden

To help ease his tax burden, his financial team suggested that Lee convert his
retirement savings into a Roth IRA. With a Roth IRA, the money is taxed as it goes
in but comes out tax-free. The plan is to convert funds into the Roth over the next
seven to nine years.

"We'll do it in bits and pieces so that Lee doesn't get hit with a huge tax bill
all at once," says Jans.

This conversion into a Roth also will give Lee the flexibility of tapping tax-free
cash as he needs it, since he paid the taxes in the conversion.

As Lee gets closer
to retirement, he continues to meet with his Thrivent Financial team who help
him tweak his retirement strategy. Much like most things in life, "it's a work in
progress," says Jans.

Making the most of retirement

Ready to review your retirement plans? Reach out to your financial
professional today so you can make plans to retire confidently and comfortable.

Insurance products issued or offered by Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Products issued by Thrivent Financial are available to applicants who meet membership, insurability, U.S. citizenship and residency requirements. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents/producers of Thrivent. Fee-based investment advisory services are available through qualified investment advisor representatives only.

Trust and investment management accounts and services offered by Thrivent Trust Company are not insured by the FDIC or any other federal government agency, are not deposits or other obligations of, nor guaranteed by Thrivent Trust Company or its affiliates, and are subject to investment risk, including possible loss of the principal amount invested.

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